Q2 2023 Sensus Healthcare Inc Earnings Call
Welcome to the Sensus healthcare second quarter 'twenty twenty-three earnings conference call, all participants will be in listen only mode.
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After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please.
Please note that this event is being recorded.
Now I'd like to turn the conference over to Kim Sutton <unk> with O H, a investor Relations. Please go ahead.
Thank you. This is Kim call. It that's with L. A J. Thank you all for participating in today's call.
Joining me from Sensus healthcare are Joseph Giordano, Chairman and Chief Executive Officer, Michael Sardana, President and General Counsel and Javier Rumpole, our Chief Financial Officer.
As a reminder, some of the matters that will be discussed during today's call contain forward looking statements within the meaning of federal Securities law.
All statements other than historical facts that address activities Sensus healthcare assumes plans expects believes intends or anticipates and other similar expressions will should or may occur in the future or forward looking statements. The forward looking statements are management's beliefs based on currently available information.
As of the date of this conference call August 3rd 20, twenty-three Sensus healthcare undertakes no obligation to revise or update any forward looking statements, except as required by law. All forward looking statements are subject to risks and uncertainties as described in the company's forms 10-K and 10-Q.
During today's call references will be made to certain non-GAAP financial measures Sensus believes these measures provide useful information for investors yet they should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP a reconciliation of non-GAAP to GAAP results is in.
Clued in today's financial results press release with that said I'd like to turn the call over to Joe Sardana Joe.
Thank you Kim and good afternoon, everyone are.
Our second quarter financial results showed improvement over the first quarter.
During Q2, we shipped 13 systems, including for SRT systems outside the U S and six SRT 100 vision systems up from 10 systems shipped during the first quarter of 2023, but down from 33 systems shipped in the prior year quarter.
During the quarter, we did achieve a milestone we have now shipped over 700 systems 708 to be exact in total and are making progress as we drive towards 1000 systems within the next couple of years. If you recall, we delivered the number 500 system during our 11th anniversary.
Three year.
I made the statement during our then earnings call that we would achieve the next 500 units in half the time.
So far we are on track and we look forward to a better second half of 2023.
For Q3 revenues were $4 $5 million, an increase of 33% sequentially, but down from the $12 1 million a year ago as discussed on last quarter's conference call. Many of our customers depend on elective aesthetic procedures as a meaningful source of practice revenue.
Profit and we are hearing encouraging feedback that patient volumes and procedure mix are improving as such we continue to build inventory and prepay for components. We're confident that we're planning appropriately and we are receiving positive feedback from our customers that they are experiencing.
The return of their patients as volumes slowly grow back to previous levels.
And speaking of volumes our surveys of Medicare showed that SRT is experiencing a 27% treatment growth rate year over year for the past six years. If this growth utilization rate continues at its current pace SRT will soon become the treatment of choice for <unk>.
Melanoma skin cancer.
Our confidence is high and we have been building inventory and preparing prepaying for components, we expect to ship at least 60 SRT systems during 2023.
And currently we are working on programs that will address any remaining hesitancy for our prospects and put us back on a growth trajectory.
Our advanced technology is expected to play a key role in our growth with Sentinel IC front and center.
This is our HIPAA compliant software that stores patient data for multiple clinic purposes, and will include artificial intelligence to allow customers to better manage their practices and data set in a light is expected to play a key role in our growth and we launched our Sentinel census club.
Good capabilities at the American Academy of Dermatology annual meeting this past March.
This new feature of Sentinel is a cloud based asset management remote monitoring and diagnostic platform and is also now available on our lasers.
Platform, both continuous remote monitoring to track the status of our system from any web browser or iOS device.
Continuous backups to ensure that valuable information is safely stored in the cloud and allows providers with multiple locations or group practices to monitor their equipment remotely at all times.
The census cloud system also allows providers to monitor any service issues, such as calibration monitoring voltage and temperature without having to send an engineered to the field as you may expect Sentinel. It allows us to track system used in real time and important feature that.
They support new sales programs.
We look forward to showcasing IC and our SRT products at local trade shows as well as the American Society for therapeutic radiation oncology beginning October one.
Although the sales cycle is longer for the hospital market radiation oncology is a highly attractive opportunity as it gains interest in the skin cancer market.
During the first quarter, we announced the sale of a system to a hospital in the northeast and we are engaged with several more hospital systems.
We also introduced new and improved high resolution ultrasound technology to provide a C and treat capability.
This leads to great outcomes and patient reassurances, because the physician can actually see the impact of each treatment on the lesion and lesion resolution after treatment.
Our fair market value leasing program results in an ROI with only two to two and a half patients treated a month.
Interest in this program remains high as evidenced by booth traffic at the conferences and trade shows we've been attending our customers are also enquiring about other types of sales programs and we are actively looking at potential options.
These activities are vital to our future not all dermatologists know about the attractiveness of SRT as many still need to be educated so given the higher reimbursement and favorable comparisons to moes overall, we've stepped up our marketing and education programs.
While we've always had a presence at the key larger conferences, we're increasing our presence at smaller regional conferences.
These events allow us to get closer to our customers without so many other companies competing for the attention.
They also are more cost effective you can follow us on Facebook or Instagram to get a sense of how active we are.
So with that overview overview I'd like to turn the call over to Michael start Dino for a bit more color on our plans and our priorities Michael Thanks, Joe last quarter I spoke about our efforts to open up new international territories are demanding process, requiring regulatory approvals and engaging the right distributors in Q.
Two census was pleased to announce our first system being sold into Ireland at Beacon Hospital in Dublin skin.
Skin cancer is the most prominent cancer in Ireland with more than 12000 cases per year, so SRT should be in high demand.
Sticking with that part of the World census, also announced a new distribution partner in M. I S healthcare, a very large and well respected.
And Ireland.
They bring a broad and growing network of relationships within the public and private health care sectors to support an effective market entry for sensus.
They also have a large service and maintenance operation supported by a team of factory trained engineers and application specialists.
Additionally, in Q2 census was excited to expand into the Central American territory with our first SRT systems sold into Guatemala.
With regard to the future our plan is to expand our Latin American and Asian footprint as quickly as possible with Brazil, and Japan being longer term goals as they are highly regulated China remains our premier international market with now more than 50 SRT is sold with the pandemic Lockdown lifted we continue to see.
Positive momentum and shipped another two SRT systems there during the quarter for a total of five shipments to Asia. So far this year.
We expect that China will take delivery of more than 10 SRT systems throughout 2023, and we look forward to expanding further into the Asian territories with a specific target on Korea, and Japan with that I'll turn the call over to Javier for a discussion of our financial results.
Thanks, Michael and good afternoon, everyone.
As Joe mentioned, our revenues for the second quarter of 2023.
$4 5 million, an increase of 33% over the first quarter after the 123.
Decrease of 62, 5% as compared with revenues of $12 1 million a year ago.
The decrease versus the prior year was primarily due to a lower number of units sold as customers continued to defer purchases as well as lower sales to a large customer.
Gross profit for the second quarter of 2023 was $2 6 million or 57, 9% of revenues compared with $8 3 million or 68, 3% of revenue for the second quarter of 2022 of them did.
The decrease was primarily due to the lower number of units sold and higher cost charged by vendors in the 2023 quarter.
Going forward, we anticipate gross margins to return to the mid 60% range as our sales continue to improve in the second half of the year.
Selling and marketing expense for the second quarter of 2023 was $1 6 million compared with $1 7 million for the second quarter of 2022.
The decrease was attributable to lower marketing initiative and commissions, partially offset by higher head count costs.
General and administrative expense for the second quarter of 2023 was $1 3 million compared with $1 1 million for the second quarter often document 'twenty two the increase was mostly due to higher professional fees offset by a reduction in insurance expense.
Research and development expense for the second quarter of $2023 8 million unchanged from the same quarter last year.
We expect R&D expense to remain at these same general level for the rest of the year.
Other income of <unk> 2 million for the second quarter of 2023, what's related to interest income.
Net loss for the second quarter of 2023 and $1 four.
$4 million or two cents per share and this compares with a net income of $3 5 million or <unk> 21 per diluted share for the second water off 2022.
Adjusted EBITDA, which we define as earnings before interest taxes, depreciation amortization and stock compensation expense was negative $1 million for the second quarter of the document <unk> 23, compared with positive $4 7 million for the second quarter of 2022.
Our briefly review our year to date financial results.
Revenues for the first half of 2023 were $7 9 million compared with $22 4 million and for the first half of 2022, reflecting a lower number of SRT unit sold.
Gross profit was $4 2 million or 53, 4% of revenue compared with $15 4 million or 68, 7% of revenue for the first half of 2022.
The decrease was primarily driven by the lower number of units sold and higher cost charged by vendors in the first half of 2023.
Selling and marketing expense was $3 7 million for the first half of 2023 compared with $2 9 million for the first half of 2022.
The increase was primarily attributable to higher <unk> expense at a head count costs, partially offset by lower commissions.
General and administrative expense was $2 9 million for the firm.
First half of 2023, compared with $2 4 million for the first half of 2022.
The increase was primarily due to higher professional fees offset by a reduction in insurance expense.
Richardson development expense was $1 9 million for the first half of 2023, compared with $1 6 million for the first half of 2022.
The increase was mostly due to expenses related to the development of a drug delivery system for our static yields we expect to complete this project by the end of the year.
Other income of <unk> 5 million for the first half of 2023 was related to interest income.
Other income of $12 8 million for the first half of 2022 was related to the gain on the sale of our noncore assets.
Net loss for the first half of 2023 was $2 3 million or <unk> 14 per share and this compares with net income of $19 6 million or $1 17 per diluted share for the first half of 2022 net income for the 2022 opioid inflows of $12 eight.
Gain on the sale of our noncore assets.
Adjusted EBITDA for the first half of 2023 was negative $3 7 million compared with a profit of $21 5 million for the first half of 2022.
Turning now to our balance sheet.
Cash and cash equivalents as of June 32023, or $20 1 million down from $25 5 million as of December 31, 2022, and up from $19 3 million as of March 31 2023.
The company had no outstanding borrowings under its revolving line of credit as of June 32023, or December 31, 2022.
We continue to prepare for the grocery ambition specifically, we're building finished goods inventory on prepaying for materials in part to get ahead of any impression I'll re prices increases.
Inventory stood at $10 1 million at the end of the second quarter up from $6 3 million at the end of Q1 and up from three 5 million as of December 31 2022.
Prepaid and other current assets were $8 1 million versus $10 7 million as of March 31, 2023, and $6 9 million as of December 31, 2022.
Our cash spend is very focused on is intended to support our ability to achieve our long term goals. Nevertheless, our balance sheet continues to position us well to take advantage of the compelling growth opportunities we may come across.
As a final comment please see the table in the news release, we issued earlier today for a reconciliation of GAAP to non-GAAP financial measures with that I'll turn the call back over to Joe.
Thanks, Javier and Michael <unk>.
SRT treatments surpassed 480000 in the last two years alone and the ROI for our premium SRT system under our fair market value leasing program continues to be compelling.
Interest in SRT remains high we expect to ship at least 60 SRT systems during the 2023 and return to profitability in the second half of the year.
Clinical results in treating non melanoma skin cancer Noninvasively are excellent with published studies showing that SRT is as good or better than most surgery.
This should be reason enough to choose SRT add to the fact that most procedures can leave scars and raise the risk of infection and the fact that our reimbursement is so much higher than it was two years ago, while most surgery reimbursement has come down and SRT becomes the clear choice. We are very excited to be working.
On making this choice even easier as.
As a final topic before we take your questions I want to add that our new lasers have the sentinel it solution capabilities embedded in them, including all six of our sensus branded as static smart lasers on our transdermal drug delivery system.
This system will for example, allow PRP to be applied to the scalp in a pain free hair restoration experience. In addition, posters have already been presented on the application for hyperhidrosis or overactive sweat glands. We expect this device to be cleared by the FDA by the end of the year.
Our transdermal drug delivery system has drawn interest from many pharmaceutical companies looking to provide patients with a pain free experience.
We're still in the early stages of tapping the enormous market opportunity for SRT, our systems are well positioned in a large and largely untapped mark they provide a compelling alternative to surgery for millions of patients and arguably the only solution to prevent the recurrence of Kellogg keloid following <unk>.
Surgical excision.
As an overlay to all of this and estimated one in five Americans will develop skin cancer. During their lifetime. This tells us that nearly 70 million people will have non melanoma skin cancer. So clearly there is a need for our SRT systems, both now and even more so in the future.
We're confident that census is positioned for success. Despite the challenges we faced in December and February .
We have a great staff to drive growth and implement our strategies, which is why we built inventory to meet the expected demand make no mistake about our enthusiasm and excitement for our technology and our future our technology treat skin cancer, as well or better than surgery, while we treat keloid is better than anything else with those cars.
Comments I. Thank you for your time and attention and now operator, we're ready to take questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you were using a speakerphone. Please pick up your handset before pressing the keys.
Anytime Youre question has been addressed and you would like to withdraw your question. Please press Star then two.
The first question comes from Scott Henry with Roth Capital. Please go ahead.
Thank you and good afternoon, Joe some some progress progress certainly sequentially from first quarter to second quarter. So can you talk about how we should thinking about the cadence in third and fourth quarter. It sounds like Youre looking for about 35 to 40 placements.
How should we think about when they may fall.
Yes, Scott Thanks for being on.
As we've said from the first quarter earnings call that we experienced some delays in the first half would be tough, but we thought that the second half would be a lot better so how.
How do we look at it we really are looking at approximately 60 plus systems for the year I would say that third quarter traditionally has been a low quarter for us, but I think it's still going to be better than the second quarter and I think the fourth quarter, which traditionally has always been our best.
<unk>.
We will continue to be the best quarter. So I think between the two sequentially I think again third quarter better than the second quarter fourth quarter best of all.
Okay, and if I recall.
You've made some comments about being breakeven or profitable in the second half of the year.
It sounds like the breakeven is about 16 units.
But do you feel comfortable you'll be profitable for the second half of the year or.
What kind of guidance would you like to yes, yes, no I'd like to tell everybody that we will be profitable in the second half of the year I think that we've been saying that from the beginning that profitability would return our number one objective is to be profitable for the entire year.
So if.
Things come around the way I think they will.
Definitely meet the profitability objectives that we've had from day one.
Okay, and then on the income statement it looks like selling expenses were a little lower than I would've expected.
In second quarter down sequentially from first quarter.
Anything of note there how should I think about it going forward as first quarter or second quarter more representative obviously, they go up a little bit volume.
Hey, Scott This is Javier it's a blend I mean in Q1, we have major ratio experiences that went through and then in Q2 compared to last year, we had lower sales compared to last year. So we had lower commissions, but you cannot take one of them.
Example, here its a basically Glen you have to see that here today.
Okay. That's helpful and final question, Joe what are you hearing from your customers are you seeing the shift in medical aesthetics.
Procedures.
Okay with the higher.
Finance rate given the current interest environment, none of your color on the customer.
Well the good thing Scott is that we are hearing from our customers that their customers are coming back so they're seeing a gain a slight gain in the services from the aesthetics side, which again puts cash in their pocket. So we're excited for that part. It's also helping them focus on what <unk> can do for them in their practice with the fact that.
You have CPT codes, that's paid for by Medicare and this is a great opportunity for them to go after some revenue that maybe they didn't have before so I think that they are open and we will do all we said that we haven't lost any of the prospects. The prospect base continues to grow but a lot of the decisions were being delayed because.
Does have the effect of the impact that the cat on the cash business. So we're starting to hear some some good rumblings from the from the field. We're excited for them that we seem to believe that the market is coming back based on their feedback and I think that's what we've been saying all along that the second half will be a much better half as people get.
Back to incorporating whatever economic situation. They are experiencing is part of life in the way we move on.
Okay, great. Thank you for taking the questions. Thanks, Scott Thanks, Scott.
Our next question comes from Anthony Vendetti with Maxim Group. Please go ahead.
Thanks, Hi, Joe Hey, Michael How're, you Javier How're you doing.
The airline Anthony how are you.
Good thanks.
So on the.
Just shifting gears back to the transdermal infusion system.
You.
Developed on your own now.
Where's the status with the 500 10-K.
Just an update on where that's at and what your expectations are.
In terms of the clearance there yeah, we've gone through all of the the regular testing through the government programs that are required and so those testing. Those reports are waiting for we expect those reports to be incorporated into an FDA submission within the next 30 to 40.
Five days and we expect FDA clearance before the end of the year one of the things that we've added which I think everybody would expect us to add was the sentinel capabilities into this program. So that the Sentinel cloud and all of the opportunities with certain of our attached to this device as well.
So it clearly will give our customers the best options possible in providing this kind of a drug delivery system. If you will so we're very very excited for it.
Okay. So the the addition of the.
Sentinel or something.
Internal system.
Piece that you're putting with it.
It has.
The combination of the two is is why it's taken a little bit longer but youre expecting within the next 45 days to submit.
And then approval by the end of the year is that right, yes, and it hasn't.
That wasn't what delayed it was the testing by the third party agencies as designated by the FDA you have to have those and there is quite a line of people lining up to bring product to market through the FDA and they've got a backlog, but all of those testings have been completed and the reports are being <unk>.
<unk>. So that's that was the delay in when I say delayed it was maybe a maybe a 30 day delay overall.
Okay.
Then just as a.
Just going back to the SRT.
I'm, saying.
Yes.
The sales force has been speaking to clients I know you're.
You've kept consistent with the <unk>.
60 systems in total by by 2023, but as we head towards the second half.
Just in conversations with dermatologists.
What are you hearing in terms of their their appetite.
For new systems as we move through the rest of this year.
Are you hearing that that that's increasing just in general.
As we are dealing with.
Interest rates and so forth, whether it's for the SRT or for other systems.
Is there a sense that dermatologists R. R.
Radisson or or.
Or scaling back their purchases or are even even leasing.
Or are things now back to what you would I'm not going to say normal, but but have have returned in terms of what you would consider.
Our normal.
Albertite for new systems into their practice.
I don't think that Theres any question that they're coming back and so we're getting feedback that things are going to start moving in the second half.
We're seeing signs of that almost every day. So we're encouraged by talking to our customers and I think during these tough times just like it was when we were going through Covid for instance, it gave us an opportunity to get even closer to our customers.
Because they're always looking for solutions and it gave us more opportunity to have dialogue with them and so I think they knew that we were there for them during the tough times were there with them during the good times just like we were during Covid. So.
I think that the feedback that we've been getting has been very very positive and it's been very very secure and how we're feeling towards the second half of the year.
We're excited.
Okay, Great and then.
You did mentioned I think.
Some some.
Sales in Asia spin.
Specifically, China and then I was wondering if you could talk about.
What youre seeing in that market and then also just an update on peak and hospital in Ireland.
Hey, Anthony it's Mike how are you.
Good Michael how are you good good so with regard to China that seems to be very consistent as I stated.
The lockdowns are pretty much done even in China Benson has been our VP of international sales has been in touch with our distributors in China and as the Chinese national himself. So he's very well connected in that area.
So we're seeing a lot of consistency and like I said there'll be over 10 systems centre, China throughout the entirety of 2023.
With regard to Beacon Hospital I went over there myself I met with the contingency there and it's in the dermatology and radiation oncology facility there and they are very very excited to have it Beacon hospital is probably the premier private hospital in Dublin.
So they have a high networth individuals climb.
Client base and they are very excited to start treating there.
Okay. Good okay. So great. So did you were there and what do you see as the.
Opportunity not just not just in Ireland.
Yes.
Is that sort of a premier hospital in Dublin, but what's the opportunity do you believe Michael.
To use this sort of as like a platform hospital and scale the opportunity percentage throughout Europe .
Yeah, Anthony let me answer that one because that's a very very good question. If you I would invite anybody to go to the Beacon website and look up the hospital and look at the services that they provide like every other hospital. They list orthopedics cancer care part they have them all listed one.
The neat thing that you see is dermatology.
And it's a collaboration between radiation oncology and dermatology to be treat to treat skin cancer and this being one of the premier private hospitals in the British Isles, they've deemed SRT from census to be the best device to treat that disease.
Disease, and I think that that's something that is a model that I think we're going to start seeing in the U S. If you go to most of the U S hospitals and looked at their websites, whether it's private or for a non-profit they don't have dermatology listed in their in their scope of services all of the other big ones are but I think youre going to start.
Seeing that coming about just like we saw with Beacon Hospital.
I think that that's a good hits good beacon for us to follow for the U S market and for beyond it exists everywhere else in the World I think it's going to grow to the U S market as well good Punjab.
Yeah.
Yes, very good alright, great. Thanks, I'll hop back into queue I appreciate it guys. Thank you.
Again, if you have a question. Please press Star then one our next question comes from Alex Nowak with Craig Hallum. Please go ahead.
Yes.
Hey, guys. This is tonnage Chamberlain entre Alex Thanks for taking my questions.
Hey.
So with the 2023 draft position schedule coming out.
Have there been any changes to reimbursement for superficial radiation therapy.
Nothing else been indicated Michael no. There was no mention of SRT in the physician fee schedule.
Sure.
Got it got it okay.
But we didn't make okay can you kind of all yep Yep can you walk us through how the sales team is adapting their process.
And this.
Capital environment.
I know you mentioned some lease programs, but can you just further expand on that a bit.
Well the lease program that we have as we've been talking about for quite a while now the fair market value lease is something thats very encouraging for the customer to adapt so it's just another tool for the customer to gain access to our technology and its a very inexpensive way of doing it much like the car leases as I've described.
<unk>, where the reserve.
The residual value if you will left on the equipment, so they're only paying for a certain portion of it.
That will continue to grow although most of our customers paid cash for the system.
We're also coming up with some other derivatives of opportunities to allow our customers to acquire our product in these tough times, you've got rentals, you've got shared shared service programs. All of these things are being proposed to customers and they're all evaluating those programs now so.
That we're going to see several of those contracts take effect between now and the ended the year and I think it's going to become popular.
Got it got it.
I got one more.
Javier late Relationship's been with your largest customer and Sean in terms of their ordering patterns in demand I know the first half of the year is difficult, but can you. Just further expand what are you seeing from dermatology practices, yes, they've been gone through the same thing that we've seen I mean, it's the same market conditions for them as it is for us so.
<unk> being our best customer I mean, it gives us opportunities to discuss together various opportunities to work closely together and how we can help.
<unk> helped drive the technology through the industry and so that never ceases I think that we've always said that we've got a great relationship there they continue to push and try to grow their business, but.
They have the same same problem as we did when we went through Covid and now that we've gone through the first half of the year I think they're going to see a rejuvenation in their business in the second half just like we are.
Awesome Awesome, Alright, that's all I had guys. Thanks.
Bring one thing up to which I think is important for everybody to understand which I mentioned during the <unk>.
The introduction.
Our experienced and we did a survey with Medicare Medicaid and found that <unk>. There was a 27% compounded increase year over year for the last six years and treatments using SRT technology. That's a huge increase that is massive I don't want anybody to lose sight on the fact that more people are.
<unk> to be treated with SRT versus any other option versus surgery. So one of the numbers that we mentioned 480000 people treated in the last two years, if that's going to continue to grow with 27% year over year, which we feel it's going to be and maybe even accelerate from that you can see where we're going to be.
The gold standard for treating skin cancer in the very near future and so that's important is that the utilization of it and if you take the number of units that we have we have now 708 systems worldwide with about 600 590 of those being in the United States.
480, and let's say, it's an average of 240000 patients a year you can see how many patients each customers treating every year and then you can calculate how much or how quickly their ROI is on the equipment. So it's very easy to derive where kind of money. They are making now that we have the cigna.
Mr <unk>.
Significant volumes of patients being treated.
Our next question.
Our next question comes from Ben Hayner with Alliance Global Partners. Please go ahead.
Good afternoon, gentlemen, thanks for taking the questions.
Definitely appreciate the big picture commentary and not having to follow Joe's pattern here.
Sure.
Just thinking about.
Some of the things that you mentioned, the 480000 treatments or the past couple of years.
How many treatments per case or per patient.
Does that factor in.
Has that grown or shrunk or is there any trend there.
Well, what we're seeing Ben and I appreciate you being on what we're seeing is between 14 and 16 fractions. So I guess you could say an average of 15 fractions per patient for the treatment of skin cancer.
But when we were talking about the number of of the numbers of 480000, that's 480000 skin cancers that are being treated lesions lesions. So it's not actual treatment times the number of treatments for those patients 480000 times an average of 15 gives you the number of treatments that are that are too.
Taking place and again those treatments without anesthesia because there is no pain. There is no cutting no scarring no bleeding and best of all.
No scarring for the patients so.
That's what we're all excited about I think that's going great and I think it will continue to grow.
I do appreciate the clarification, there because I actually took it for a fraction so.
It.
It would have been a mistake and I guess there.
And then on the.
Getting to a 1000 systems.
Obviously, you've made a bigger push internationally is starting to bear fruit.
The next three under their systems do you have a sense of how those will track in terms of the split of.
Domestic versus international or.
Any color that you might be able to share there.
I think that the international market as represented about 5% to 7% of our overall revenue and quite frankly, I think the biggest market is still in the U S. So as we continue to grow I think the biggest growth is still going to be in the U S and the international market in spite of growing and gaining more ground in different.
Parts of the World I still think it's going to be between $5 seven 8% of our overall revenue, it's still going to come from the U S.
Okay.
Got it and then lastly for me on the setting on the AI applications that you guys are building then.
I apologize if I missed this but.
What sort of functionality functionality slash improvement slash applications. The does the AI that youre developing and putting in these.
And just Sentinel.
Enable.
Well.
I think that we'll have to wait until we make the final introduction, which we expect to do by.
AAD next March in San Diego, but when you include AI. It gives you some unbelievable opportunities for the operator for the patient for the physician all of the above the benefit from that and it provides us with total EMR capabilities in electronic medical records, so that everything can be stored.
Within the context of the of the product as well as billing and.
And all the billing and collections and all of those but I guess if I.
I had a dream if I was to tell you what I think it's going to be if you look at at the CRE or any of these other things with some of the other programs I could see us having a program where we can talk to the machine is it'll give us exactly what we're looking for.
Okay. So stay tuned there.
Sounds like there's some exciting developments, yes, it'll it'll be fun.
Good deal.
All I had gentlemen, thanks for taking the questions and congrats on the.
Sequential improvement.
Thanks, Ben appreciate it thanks Ben.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Okay. Thank you.
Thanks once again for your time this afternoon and for your interest in Sensus healthcare everybody I'd like to mention that we will be presenting at the Dawson James small cap growth conference on Thursday October 12 in Jupiter, Florida also in the coming weeks, we plan to hold a series of one on one virtual meetings. So please contact <unk>, if you'd like to get.
The schedule, we'll speak with you again, when we report third quarter financial results in early November in the meantime, Thank you all for joining US today. Thank you.
Yes.
Okay.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.